LGF Inc. sells furniture for $16,525. customers can buy a 5 years warranty on this furniture for $5,000 up to 1year after the purchase date of the product. Furniture and warranty package costs $20,000 for special deal.

On January 1, 2007, the company sold 5 special deal packages. The cost of the furniture sold was $68,000.

The company paid cash of $700 for the cost of meeting the warranty during 2007.

The company recognizes revenue annually on the warranty agreement based on the passage of time.

Under IFRS, what is the journal entries for January 1, 2007 and December 31, 2007?